KRS 286.9-035: Deferred deposit transaction agreement with unlicensed person void.

(1) Any deferred deposit transaction agreement made with a person who is not licensed

under this subtitle shall be void, and the person shall not collect any principal, fee,

interest, charges, or recompense whatsoever.

(2) The commissioner may void a deferred deposit transaction agreement when it is

determined by the commissioner that the licensee has violated any provision of this

subtitle. The licensee shall be allowed to recover from the customer any principal

paid by the licensee to the customer, but the li censee shall not recover any service

fee or other charge related to the deferred deposit transaction.

(3) For purposes of this section, "payment instrument" also includes debit

authorization, electronic funds transfer, and any other form of electronic

transmission of money.